ENP Newswire -
Release date- 20062014 -
This performance is at the low end of our expectations supporting the qualitative guidance presented in our first quarter of 2014 earnings release and conference call which stated, 'We currently expect some improvement in second quarter of 2014 earnings from the first quarter of 2014, excluding the impact of the tax and disposal of assets charges incurred in the first quarter.'
Included in the first quarter of 2014 earnings was a
The performance of our raw materials segment includes an anticipated operating loss of
A three week outage began in June to implement adjustments that will improve both yield and conversion costs. We expect significant improvements in the performance of the Louisiana DRI facility in the third quarter, with profitable performance anticipated by the end of the year.
Overall operating performance at our steel mills segment is expected to be slightly improved compared to the first quarter of 2014, as improvements in sheet and plate profitability are partially offset by lower profitability in structural steel. In June,
This planned outage will result in lower shipments for structural steel. Import levels continue to negatively impact pricing and margins, particularly at our bar and sheet mills. Additionally, the second quarter of fiscal 2014 is four days shorter than the first quarter of 2014, contributing to lower shipments. Steel demand continues to be strong, particularly for sheet and plate products.
Our fabricated construction products businesses (rebar fabrication, joist and decking and pre-engineered metal buildings) returned to solid profitability in the second quarter of 2014, reflecting improving conditions in the nonresidential construction markets. Although nonresidential construction markets are at historically low levels, they are improving. Accordingly, we expect further increased operating profits in our fabricated construction products businesses going forward.
Projected second quarter of 2014 results include no charge to value inventories using the last-in, first-out (LIFO) method of accounting, compared to a charge of
Certain statements contained in this news release are 'forward-looking statements' that involve risks and uncertainties. The words 'believe,' 'expect,' 'project,' 'will,' 'should,' 'could' and similar expressions are intended to identify those forward-looking statements.
Factors that might cause the Company's actual results to differ materially from those anticipated in forward-looking statements include, but are not limited to: (1) the sensitivity of the results of our operations to prevailing steel prices and the changes in the supply and cost of raw materials, including scrap steel; (2) market demand for steel products; (3) energy costs and availability and (4) competitive pressure on sales and pricing, including competition from imports and substitute materials.
These and other factors are discussed in
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